Costco's Decision to Keep Hot Dog and Soda Combo Prices Low Boosts Revenue
Costco and Its Unbeatable Hot Dog and Soda Combo
If you're a long-time Costco member, you may have noticed that the price of many items has increased in recent years due to inflation. However, there's one deal that remains a steal -- the hot dog and soda combo that has maintained its $1.50 price tag since 1985. Despite the company not profiting from these combos, it strategically prioritizes customer loyalty.
Revenue Strategy
Costco's decision to keep the hot dog combo price low has resulted in the sale of over 130 million combos annually, generating a substantial $195 million in revenue. The company makes up for the loss on these combos by focusing on membership fee income, which totaled $1.11 billion in the last quarter.
Should You Join Costco?
Considering the savings potential for Costco members, especially when purchasing items in bulk, the value of joining goes beyond the membership cost. The investment in a Costco membership can lead to significant savings on household essentials, making it a financially viable option for many.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.